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Avio sells off PW100 support business to ITP

Propulsion component and services supplier Avio has already started offloading some work it performs for competing engine makers as regulators continue to review a pending acquisition deal by General Electric.

Avio has agreed to sell maintenance work on turboprop engines to Madrid-based Industria de Turbo Propulsores (ITP).

ITP's Ajalvir complex in the Spanish capital will overhaul and maintain Pratt & Whitney Canada PW100 family engines after acquiring the piece of Avio's maintenance business now based in Naples, Italy.

The deal helps ITP achieve a strategic goal to increase its share of in-service support in the regional aviation market segment, the company says. It also strengthens a growing partnership between P&WC and ITP, which has also signed on as a risk-sharing partner on new aircraft engine programmes.

PW100-series engines power dozens of aircraft types produced by 10 different manufacturers, including the Bombardier Q400, ATR 72-600, Ilyushin Il-114-100 and Xian MA60. ITP expects to induct 50-60 engines a year initially, and grow to 90 engines annually in the "mid-term", averaging about €40 million ($52 million).

Since acquiring Avio in late December, GE has said it is working closely to integrate the Italian company into its operations while government anti-trust reviews continue.

GE plans to make Avio a standalone business and a centre of excellence in Turin on power transmission systems. At the same time, GE executives have said they want to increase Avio's business doing work for competitors, such as P&W and Rolls-Royce.

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